You are evaluating shares in Honeywell International (HON). They currently pay an annual dividend of $4.00 per share this year and expect to raise that by 5% per year every year in the future. If you use a discount rate of 10%, what is the value of HON shares(to two decimal places)?

Answers

Answer 1

Answer:

$84

Explanation:

Calculation for what is the value of HON shares

Using this formula

Value of HON shares=(Expected dividend next year)/(Discount rate -Growth rate of dividend)

Let plug in the formula

Value of HON shares= 4(1+.05)/(.10-.05)

Value of HON shares= (4.2/ .05)

Value of HON shares= $84

Therefore the Value of HON shares will be $84


Related Questions

The accrual basis of accounting applicable to proprietary fund types requires that exchange revenues be recognized when:___________
A. Earned.
B. Collected in cash.
C. Authorized by the budget ordinance.
D. Measurable and available.

Answers

Answer:

A. Earned.

Explanation:

The accrual basis of accounting applicable to proprietary fund types requires that exchange revenues be recognized when earned. In Accrual Accounting, revenue is recognized when it is earned and is recognizable to be collected in future, not when cash is received against that revenue.

Live Nation operates music venues, provides management services to music artists, and promotes more than 22,000 live music events annually. The company merged with Ticketmaster and acquired concert and festival promoters in the United States, Australia, and Great Britain. How has the company used horizontal mergers and acquisitions to strengthen its competitive position? Are these moves primarily offensive or defensive? Has either Live Nation or Ticketmaster achieved any type of advantage based on the timing of its strategic moves?

Answers

Answer:

This is a horizontal merger since both companies competed against each other in the past with similar products or services. As the number of firms decreases, competition between the remaining firms will become fierce.

This is an offensive move by Live Nation since its aim is to gain competitive advantages and market power. Competitive advantages resulting from this merger might be: higher market share, lower operating costs, synergy and efficiency.

If we look at it form Ticketmaster's point of view, this could be considered a defensive move. The main advantage achieved by Ticketmaster is less competition since Live Nation was the world's largest concert promoter.

Even though the merger happened during the great recession, 2009, the value of the new company has increased from a little over $800 million to almost $3 billion. That means that did something right. They were basically able to use resources more efficiently and gain even more market share. They are so large now, that some accuse them of being a monopoly.

In this case, the merger between Live National and Ticketmaster is a horizontal merger.

From the information given, it is a horizontal merger because it is a merger between the companies that are in the same or similar industry. In this case, there would be a strengthening of competitive position as there will be an increase in market share.

The merger is important as it will help reduce cost as well as increase efficiency. With this strategic move, Live Nation or Ticketmaster has allowed itself to gain a more competitive advantage. By creating a larger market share, the timing will make it harder for new entrants to gain entry into the market.

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On January 1, a machine with a useful life of four years and a salvage value of $16000 was purchased for $80000. What is the depreciation expense for year 2 under straight-line depreciation?a. $80000.b. $20000. c. $40000. d. $44000.

Answers

Answer: Year 2 depreciation= $16,000

Correct answer is not among  the options

Explanation:

Using the straight line depreciation method we have that

Annual Depreciation = Purchase cost - Salvage value/ useful life

=$80000-$16000 / 4

$64,000/ 4

= $16,000

If Annual depreciation= $16,000 , then Deprecation expense for year 2 = $16,000

Sudoku Company issues 26,000 shares of $8 par value common stock in exchange for land and a building. The land is valued at $235,000 and the building at $380,000. Prepare the journal entry to record issuance of the stock in exchange for the land and building.

Answers

Answer and Explanation:

The journal entry to record the issuance of the stock in exchange of the land and the building is as follows:

Land $235,000

Building $380,000

            To Common stock, $8 par value (26,000 shares × $8) $208,000

            To Paid-in capital in excess of par value, common stock $407,000

(To record the  issuance of the stock in exchange of the land and the building)

Here the land and building is debited as it increased the assets and the common stock and its paid in capital is credited as it also increased the stockholder equity

Tool Manufacturing has an expected EBIT of $63,000 in perpetuity and a tax rate of 35 percent. The firm has $170,000 in outstanding debt at an interest rate of 7.9 percent, and its unlevered cost of capital is 12 percent. What is the value of the firm according to MM Proposition I with taxes?

Answers

Answer:

$400,750

Explanation:

Calculation for the value of the firm according to MM Proposition I with taxes

First step is to calculate the value of the unlevered firm using this formula

Value of the unlevered firm= EBIT(1 - Tax rate)/Unlevered cost of capital

Let plug in the formula

Value of the unlevered firm= ($63,000)(1 - 0.35)/0.12

Value of the unlevered firm=$63,000*0.65/0.12

Value of the unlevered firm=$40,950/0.12

Value of the unlevered firm= $341,250

Last step is to calculate the value of the levered firm using this formula

Value of the levered firm = Value of the unlevered firm+ (Tax rate*Outstanding debt)

Let plug in the formula

Value of the levered firm =$341,250 + 0.35($170,000)

Value of the levered firm=$341,250+59,500

Value of the levered firm = $400,750

Therefore the Value of the levered firm will be $400,750

HOW DOES THIS AGENCIES PERFORM THEIR SERVICES?​

Answers

Answer:

The agencies perform the services by hiring CEOs (or the ceos of the company) by assigning them jobs and then hiring people that meet the qualifications. Also, if they are at least 16 then they should have everything they need to work or volunteer.

Explanation:

Direct labor cost is an example of a controllable cost for the supervisor of a manufacturing department.

a. True
b. False

Answers

Answer:

a. True

Explanation:

Direct labor cost can be defined as the amount of money associated with paying of workers wages who are saddled with the responsibility of producing the goods and providing services.

Direct labor cost is an example of a controllable cost for the supervisor of a manufacturing department.

Marigold Lake Corporation’s accounting records show the following at year-end December 31, 2017:

Purchase Discounts

$5,960
Beginning Inventory

$33,550
Freight-In

8,710
Ending Inventory

28,600
Freight-Out

10,940
Purchase Returns and Allowances

3,810
Purchases

163,210


Assuming that Marigold Lake Corporation uses the periodic system, compute cost of goods purchased and cost of goods sold.

Cost of goods purchased ______________________

Cost of goods sold ___________________________

Answers

Answer:

Cost of Goods Purchased;

= Purchases - Purchase Returns and Allowances - Purchase Discounts + Freight-In

= 163,210 - 3,810 - 5,960 + 8,710

= $162,510

Cost of Goods Sold

= Beginning Inventory + Cost of Goods Purchased - Ending Inventory

= 33,550 + 162,510 - 28,600

=  $167,100

Derby Inc. manufactures a product which contains a small part. The company has always purchased this motor from a supplier for $125 each. Derby recently upgraded its own manufacturing capabilities and now has enough excess capacity (including trained workers) to begin manufacturing the motor instead of buying it. The company prepared the following per unit cost projections of making the motor, assuming that overhead is allocated to the part at the normal predetermined overhead rate of 150% of direct labor cost.
Direct material $38Direct labor 50Overhead fixed and variable 75
Total 163
The required volume of output to produce the motors will not require any incremental fixed overhead. Incremental variable overhead cost is $21 per motor. What is the effect on income if Derby decides to make the motors?
a. Income will decrease by $16 per unit.
b. Income will increase by $16 per unit.
c. Income will increase by $23 per unit
d. Income will decrease by $23 per unit.
e. Income will increase by $39 per unit.

Answers

Answer:

Derby Inc.

If Derby decides to make the motors,

b. Income will increase by $16 per unit.

Explanation:

a) Data and Calculations:

Bought-in cost = $125

Predetermined overhead rate = 150% of direct labor cost

Direct material                      $38

Direct labor                             50

Overhead fixed and variable 75

Total cost per unit              $163

Incremental variable overhead cost = $21

Total variable cost = $109 ($38 + 50 + 21)

Differential Income per unit = $16 ($125 - $109)

b) Making the motors in-house will increase income by $16 than buying it outside.  This differential income is obtained by comparing the cost of buying the motors from suppliers and the cost of making the motors internally.

Which of the following is not an economic system?
A.market
B.command
C.revisionist
D.mixed

Answers

Answer:

the answer is C

Explanation:

this is what I found listing:

-Pure Market Economy.

-Pure Command Economy.

-Traditional Economy.

-Mixed Economy

Answer:

The answer is C

Explanation:

The annual demand for a product is 1,000 units. The company orders 200 units each time an order is placed. The lead-time is 6 days. There are 250 working days per year. If the reorder point is 50, what safety stock are they using?

Answers

Answer:Safety stock= 26 units  

Explanation:

Annual demand = 1,000

Working days = 250 days per year

Demand per day = 1000/ 250 = 4 units per day

Lead Time demand  = Lead time x Average sales per day

= 6 days lead time x 4 units per day = 24 units

reorder point= Lead time demand + Safety stpock

Safety stock = Reorder point - lead time demand

=  50 - 24 units

Safety stock= 26 units  

Six months ago, you purchased 3,000 shares of ABC stock for $47.06 a share. You have received dividend payments equal to $.80 a share. Today, you sold all of your shares for $49.74 a share. What is your total dollar return on this investment?a. $2,400.b. $10,050.c. $8,040.d. $10,440.e. $20,880.

Answers

Answer:

Total dollar return = 2400 + 8040 = $10440

Option d is the correct answer

Explanation:

To calculate the total dollar return on the investment, we will calculate the value of dividend received from the shares and the capital gain made on this investment. The capital gain is the appreciation in value less the initial cost paid for the investment.

First we calculate the value of dividend received on the investment.

Dividend received = 3000 * 0.8 = $2400

Now we calculate the value of capital gain.

Capital gain = (Sale price - Initial cost) * Number of shares

Capital gain = (49.74 - 47.06) * 3000

Capital gain = $8040

Total dollar return = 2400 + 8040 = $10440

1. What is the difference between pricing objectives and pricing constraints?



Answers

Answer: pricing constraints are factors that limit the range of price a firm May set,such as newness of the product (alternative) , demand for the product class, product, and brand (alternative), cost of producing in marketing the product (alternative), competitors prices.

Pricing objectives-include maximizing profit, increasing sales volume, matching competitors prices,each pricing requires a different price-setting strategy in order to successfully achieve.

Explanation:

A borrower who wants to minimize interest should try to:

A. select a loan with a low simple interest rate.

B. select a credit card with a high compound interest rate.

C. select a loan with a low compound interest rate.

D. select a credit card with a high simple interest rate.

Answers

Answer:

A. select a loan with a low simple interest rate.

Explanation:

A borrower who wants to minimize interest should try to: Select a loan with a low simple interest rate. Because low simple rate provides the lowest rate as compared to other interest.

What is interest rate?

Interest rate is the amount charge by the lender on the money which is taken by the borrower .  Annual percentage rate is used to calculate the total amount.

In annual percentage rate add fees and discount points, on with the interest rate.

Thus, option A is correct.

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A manufacturer reports the information below for three recent years. Year 1 Year 2 Year 3 Variable costing income $ 116,000 $ 120,800 $ 123,950 Beginning finished goods inventory (units) 0 1,400 900 Ending finished goods inventory (units) 1,400 900 1,000 Fixed manufacturing overhead per unit $ 4.40 $ 4.40 $ 4.40 Compute income for each of the three years using absorption costing.

Answers

Answer:

Absorption costing income

Year 1:  $122,160

Year 2: $118,600

Year 3: $124,390

Explanation:

As per given data

_________________________________ Year 1 ___ Year 2 ___Year 3

Variable costing income ____________ $116,000 __ $120,800 __$123,950

Beginning finished goods inventory (units) 0 _______ 1,400 _____ 900

Ending finished goods inventory (units) __ 1,400 ____ 900 ______ 1,000

Fixed manufacturing overhead per unit __ $4.40 ____ $4.40 ____ $4.40

Absorption costing income

_________________________________ Year 1 ___ Year 2 ___Year 3

Variable costing income ____________ $116,000 _ $120,800 __$123,950

Fixed OH in Beginning finished goods _  ($0) _____ ($6,160) ___ ($3,960)

Fixed OH in Ending finished goods ____ $6160 ___ $3,960 ___ $4,400

Absorption costing income __________ $122,160 _ $118,600 __ $124,390

Sullivan signs an employment agreement with Keller Construction. Two days after signing, Sullivan receives a job offer from Big Sky Construction for considerably more money. He explains the situation and asks to be released from the Keller contract. Keller agrees orally, provided Sullivan will help them find a replacement. Is this release valid?

Answers

Answer:

Yes,

Explanation:

Yes, in this scenario a verbal release would be valid and enforceable. In any scenario where a verbal agreement is made that includes exchanging two things of value automatically becomes valid and enforceable. In this case, Keller Construction is giving up the contract with Sullivan which is valuable to them in exchange for Sullivan's service in finding another suitable candidate that can provide similar value to the company. Therefore making it a proper exchange of value.

What is a Capital Gain on an investment?

A. Money that you are paid as a result of owning stock in a company that is earning a profit.

B. Money that you are paid for letting others borrow your money for a period of time.

C. Money that you are paid for letting others borrow your money for a period of time.

D. Increase in value of an equity investment that is a result of appreciation of that asset.

Answers

Answer:

B and C are the same, and none of the answers are correct

Explanation:

Capital gain is the amount of money you earn after selling a property or investment. It's essentially (the price you sold it for) -- (the price you paid for it)

eg if you bought stock for $100 and sold it for $200, you'd have a capital gain of $100 (200-100)

The following information was available for Swifty Corporation at December 31, 2022: beginning inventory $89000; ending inventory $128000; cost of goods sold $604000; and sales $992000. Swifty inventory turnover ratio in 2022 was:____.a. 9.2 times. b. 10.0 times. c. 6.0 times. d. 7.2 times.

Answers

Answer:

c. 6.0 times.

Explanation:

The computation of the inventory turnover ratio is shown below:

As we know that

Inventory turnover ratio is

= Cost of goods sold ÷ average inventory

= $604,000 ÷ ($89,000 + $128,000) ÷ 2

= $604,000 ÷ $108,500

= 5.57 times

= 6 times

Hence, the inventory turnover ratio of Swifty is 6.0 times

Therefore the correct option is c.

We simply applied the above formula so that the correct value could come

And, the same is to be considered

What is a stock? What is an IPO?

Answers

Answer:

Explanation initial public offering is a company's first time offering it's stock for sale to the public and is generally coincides with listening it shares on a public Stock Exchange

What does a credit score measure?

Answers

Your credit score is a number that represents the risk a lender takes when you borrow money. A FICO score is a well-known measure created by the Fair Isaac Corporation and used by credit agencies to indicate a borrower's risk. ... However, in both cases, the higher the credit score, the lower the risk to the lender.

Parsons Company is planning to produce 2,900 units of product in 2020. Each unit requires 2.00 pounds of materials at $7.00 per pound and a half-hour of labor at $16.00 per hour. The overhead rate is 60% of direct labor.
(a) Compute the budgeted amounts for 2020 for direct materials to be used, direct labor, and applied overhead.
Direct materials
Direct labor
Overhead
(b) Compute the standard cost of one unit of product. (Round answer to 2 decimal places, e.g. 2.75.)
Standard cost $

Answers

Answer:

Results are below.

Explanation:

First, we need to calculate the total cost of producing 2,900 units:

Total cost= direct material + direct labor + allocated overhead

Total cost= (2*7)*2,900 + (0.5*16)*2,900 + [(0.5*16)*0.6]*2,900

Total cost= 40,600 + 23,200 + 13,920

Total cost= $77,720

Now, the unitary standard cost:

Unitary cost= total cost/number of units

Unitary cost= 77,720 / 2,900

Unitary cost= $26.8

Andrew sold a painting to Henry claiming it was an original Matisse. However, Andrew had recently bought the painting from an artist who specializes in reproducing original masters. When Henry showed the painting to an arts dealer, the dealer pointed out that it was a fake. Thus, Henry was a victim of _____.a. unconscionability.b. fraud.c. negligent mis-representation.d. slander.

Answers

Answer:

B) fraud

Explanation:

From the question, we are informed about Andrew who sold a painting to Henry claiming it was an original Matisse. However, Andrew had recently bought the painting from an artist who specializes in reproducing original masters. When Henry showed the painting to an arts dealer, the dealer pointed out that it was a fake. In this case Henry was a victim of fraud.

Fraud can be regarded as an intentional deception by someone or group of people to secure a personal or financial gain which is unlawful. It could be explained as criminal deception to deprive someone his/legal right. However, it is punishable under law.

Financial information is presented below:
Operating expenses $ 32000
Sales returns and allowances 6000
Sales discounts 5000
Sales revenue 190000
Cost of goods sold 93000
Gross profit would be:_________
a. 0.34.
b. 0.40.
c. 0.36.
d. 0.64.

Answers

Answer:

0.49

Explanation:

First, we need to compute gross profit. See computation of gross profit below;

Sales revenue

$190,000

Less :

Sales returns and allowance

($6,000)

Net sales

$184,000

Less:

Cost of goods sold

($93,000)

Gross profit

$91,000

Therefore,

Gross profit rate = Gross profit ÷ Sales

Gross profit = $91,000 ÷ $184,000

Gross profit rate = 0.49

Intemet
Explorer
1.
is a system where related goods and integrated services are bundled together and
sold in the place of independent and isolated items.
Word 2013
Systems selling
Systems buying
Modified rebuy
Straight rebuy
Excel 2013

Answers

is a system where related goods and integrated services are bundled together and

sold in the place of independent and isolated items.

Word 2013

Systems selling

Systems buying

Modified rebuy

Straight rebuy

Excel 2013

Nina Corp. uses no debt. The weighted average cost of capital is 6 percent. The current market value of the equity is $16 million and the corporate tax rate is 35 percent.
What is EBIT? (Enter your answer in dollars, not millions of dollars, i.e. 1,234,567. Round your answer to 2 decimal places. (e.g., 32.16))
EBIT $

Answers

Answer:

$1,476,923.08  

Explanation:

The company is an all-equity firm, hence, the value of the firm can be determined using the formula below:

value of firm=EBIT*(1-tax rate)/average cost of capital

Value of firm=$16,000,000

EBIT is the unknown

tax rate=35%

average cost of capital=6%

16,000,000=EBIT*(1-35%)/6%

16,000,000=EBIT*0.65/6%

16,000,000*6%=EBIT*0.65

EBIT=16,000,000*6%/0.65

EBIT=$1,476,923.08  

A company calls its bonds at a price of $105,000. The face value is $100,000 and the carrying value of the bonds at the retirement date is $103,745. The issuer's journal entry to record the retirement will include a:_________.A. Debit to Premium on Bonds.B. Credit to Bonds Payable.C. Debit to Discount on Bonds.D. Credit to Gain on Bond Retirement.E. Credit to Premium on Bonds.

Answers

Answer: A. Debit to premium on bonds

Explanation:

From the information, we are informed that a company calls its bonds at a price of $105,000 and that the face value is $100,000 and the carrying value of the bonds at the retirement date is $103,745.

The issuer's journal entry to record the retirement will include:

Debit bonds payable $100,000

Debit premium on bonds $3,745

Debit loss on bond retirement $1255

Credit cash $105,000

Therefore, the correct option is A.

Earnings available to common shareholders are divided by the average number of shares actually outstanding during the accounting period. Identify which of the reporting methods this statement describes:_______.

Answers

Answer: Earnings per share

Explanation:

There are no options but this should be the correct answer.

Earnings per share are calculated by dividing the earnings available to shareholders which is usually the Net income by the average number of share outstanding during the accounting period.

Earnings per share therefore shows how profitable a company is and how profitable it is to invest in a company with higher EPS ratios being more desired than lower.

Unlike other forms of persuasion, manipulation involves:_________

a. emotion a call to action.
b. rationales.
c. deductive reasoning.
d. deception.

Answers

Answer:The answer is D

Concord Corporation developed the following information about its inventories in applying the lower-of-cost-or-net-realizable-value(LCNRV) basis in valuing inventories:_______. Product Cost Market A $91000 $96000 B 64000 61000 C 128000 130000 After Concord Corporation applies the LCNRV rule, the value of the inventory reported on the balance sheet would be:________.

Answers

Answer:

the value of the inventory reported is $280,000

Explanation:

The computation of the inventory reported on the balance sheet is shown below:

As we know that the inventory should be recorded at lower cost of cost or market value. So here the same is applied

= Lower amount of market A +  Lower amount of market B +  Lower amount of market C

= $91,000 + $61,000 + $128,000

= $280,000

hence, the value of the inventory reported is $280,000

Larkspur, Inc. issued $432,000, 7%, 20-year bonds on January 1, 2020, at 104. Interest is payable annually on January 1. Larkspur uses straight-line amortization for bond premium or discount. Prepare the journal entry to record the issuance of the bonds.

Answers

Answer and Explanation:

The Journal entry to record the issuance of the bond is as follows:

Cash Dr  $449,280 ($432,000 × 1.04)

        To Bond payable $432,000

        To Premium on bond payable $17,280

(Being the issuance of the bond is recorded)

here the cash is debited as it increased the assets and credited the bond payable and the premium on bond payable as it also increased the liabilities

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